I can build for 80% of value - Posted by Michael Palmer

Posted by Brent_IL on July 19, 2003 at 22:51:33:

Most builders who are acting as general contractors can build for 75% to 80% of market value. Your competition is all other builders.

The cost of the land relative to the pricing of the house seems to be an important factor.

Builders, that I’ve talked to in the past, tell me that it’s always a good idea to build standard houses by using pre-existing plans. When you get an architect involved the costs go up and the profit potential goes down.

I can build for 80% of value - Posted by Michael Palmer

Posted by Michael Palmer on July 19, 2003 at 22:39:26:

I currently build spec houses. I can build a new bread and butter home for approximately 80% of it’s value. My first 2 deals were losers but they taught me what I need to know to do it profitably.The key seems to be learning to buy right and recognizing value.In my area there is currently more deals available than I can borrow the money to do. Although I have spotless credit, conventional banking practices limit how much I can borrow.I’m looking for alternatives.I would also like to figute out how to enhance my yield other than going the route of my friendly nieghborhood realtor.Please post suggestions for all to share.

Re: I can build for 80% of value - Posted by ownerlisted.com

Posted by ownerlisted.com on July 20, 2003 at 11:45:02:

In order to increase your yield you may market the properties yourself, provided you use a professional approach (unlike the majority of fsbo’s) that investors target to do deals with. Factors to consider closely are: 1.) Do you have a professional yard sign (approx 60% of buyers find their property via a yard sign), 2.) Newspaper Advertising with professional quality web site photos - a unique web site address that you can place directly into your ad (ie. www.ownerlisted.com/123) that will send interested parties directly to information on the property, 3) directional signs - located at busy nearby throughfares. You can read a booklet I wrote a couple of years ago at www.spokanebyowner.com/report. Feel free to take a look at the new web site I am developing (not sure when it will be complete, but probably will be by the time you have your properties ready to sell). I would be more than happy to give you free access to its use in the short term. Where are you from?

Ron M (WA)

Re: I can build for 80% of value - Posted by Don Dion

Posted by Don Dion on July 20, 2003 at 11:17:58:

What area of the country are you in? I have been a mortgage banker since 1982 and a builder since 1995. If you want some coaching via email drop me a line. I know of a process that can control your costs and profit level if your in the right area’s of the country for it to work.